Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Unlike the investment banks, we created StockStory to provide independent analysis that helps you determine which companies are truly worth following. That said, here is one stock where Wall Street’s positive outlook is supported by strong fundamentals and two where consensus estimates seem disconnected from reality.
Two Stocks to Sell:
Salesforce (CRM)
Consensus Price Target: $273.66 (40.2% implied return)
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE: CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Why Does CRM Worry Us?
- Customers were hesitant to make long-term commitments to its software as its 10.3% average ARR growth over the last year was sluggish
- Anticipated sales growth of 11% for the next year implies demand will be shaky
- Operating profits and efficiency rose over the last year as it benefited from some fixed cost leverage
Salesforce is trading at $195.19 per share, or 4x forward price-to-sales. If you’re considering CRM for your portfolio, see our FREE research report to learn more.
Under Armour (UAA)
Consensus Price Target: $7.73 (26.6% implied return)
Founded in 1996 by a former University of Maryland football player, Under Armour (NYSE: UAA) is an apparel brand specializing in sportswear designed to improve athletic performance.
Why Do We Steer Clear of UAA?
- Weak constant currency growth over the past two years indicates challenges in maintaining its market share
- Shrinking returns on capital from an already weak position reveal that neither previous nor ongoing investments are yielding the desired results
- 6× net-debt-to-EBITDA ratio shows it’s overleveraged and increases the probability of shareholder dilution if things turn unexpectedly
At $6.11 per share, Under Armour trades at 33.5x forward P/E. To fully understand why you should be careful with UAA, check out our full research report (it’s free).
One Stock to Buy:
Warby Parker (WRBY)
Consensus Price Target: $29.17 (18.7% implied return)
Founded in 2010, Warby Parker (NYSE: WRBY) designs, manufactures, and sells eyewear, including prescription glasses, sunglasses, and contact lenses, through its e-commerce platform and physical retail locations.
Why Is WRBY a Top Pick?
- Fast expansion of new stores indicates an aggressive approach to attacking untapped market opportunities
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Earnings per share grew by 134% annually over the last three years and trumped its peers
Warby Parker’s stock price of $24.58 implies a valuation ratio of 49.1x forward P/E. Is now the right time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
